HOARDING INTERNATIONAL RESERVES AND GLOBAL LIQUIDITY EXPANSION, WHAT ARE THE LINKS AND DO THEY MATTER
Nady Rapelanoro
Doctor, Central Bank of Madagascar, Madagascar
Abstract
Global liquidity expansion raises concerns amongst regulators and policy makers, especially since its evolution is closely related to destabilizing phenomena’s, particularly for the financial sector. Despite that those effects are largely investigated in the advanced countries, the literature is scarce concerning the effects for the emerging and developing economies. In this paper, our objective is to investigate the links between the hoarding reserves observed in the Asian emerging economies and the development of the global liquidity conditions in the core countries. For this purpose, we study the theoretical relationships between the two phenomena and provide an empirical approach that evaluates the influences of the growing demand for reserves in the emerging countries into the main reserves issuing country. We particularly focus on macroeconomics consequences and the effects on the developments of global liquidity conditions.
Keywords: SVARs, Global liquidity, Emerging countries, International reserves
Journal Name :
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EPRA International Journal of Economics, Business and Management Studies (EBMS)
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Published on : 2024-10-24
Vol | : | 11 |
Issue | : | 10 |
Month | : | October |
Year | : | 2024 |